Aramark Holdings (ARMK)

Fixed asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	17,425,800	19,257,800	15,941,600	11,818,400	12,437,600
Property, plant and equipment	US$ in thousands	1,573,190	1,425,970	2,032,040	2,038,390	2,050,900
Fixed asset turnover		11.08	13.51	7.85	5.80	6.06

September 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $17,425,800K ÷ $1,573,190K
= 11.08

The fixed asset turnover ratio for Aramark Holdings has fluctuated over the past five years. In 2024, the ratio stands at 11.08, representing a decrease from the previous year's 13.51. However, it remains significantly higher than the ratios reported for 2022, 2021, and 2020, which were 7.85, 5.80, and 6.06, respectively. This indicates that the company generated $11.08 in revenue for every dollar of fixed assets invested in 2024.

Despite the recent decline, the upward trend in fixed asset turnover from 2020 to 2023 suggests an increase in efficiency in utilizing fixed assets to generate sales. The dip in 2024 could be attributed to various factors such as changes in the business environment, investment decisions, or operational challenges. Overall, the company's ability to generate revenue from its fixed asset base has shown improvement over the past five years, albeit with some fluctuations.